Loans

How to Apply for Federal Direct Loans

After you submit the FAFSA and have been offered a loan, you may accept or decline the full amount of your loan eligibility through your My Evergreen account. If you are offered a Federal Direct Subsidized (undergraduate students only) and/or Unsubsidized Loan, and want to accept less than the full amount offered, let us know by completing and submitting the Direct Loan Request Form to our office.

If you are accepting a Federal Direct Subsidized or Unsubsidized loan for the first time, you will need to complete Direct Loan Entrance Counseling and electronically sign a Master Promissory Note (MPN).

You may complete your Direct Loan Entrance Counseling and electronically sign your MPN with your FSA ID by visiting the Federal Student Aid website. If you have already taken out a Federal Direct Loan within the last 10 years, but this is your first loan with Evergreen, you only need to complete the Direct Loan Entrance Counseling.

To complete an E-MPN, you will be required to use your FSA ID. Learn more about how to create an FSA ID (PDF). A parent borrower must also have an FSA ID when completing a PLUS E-MPN.

The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s).

FSA ID—Username and Password—Information

To sign your MPN electronically, you will use your FSA ID. If you do not have your FSA ID, you may edit your FSA ID at the Federal Student Aid website.

In most cases once you’ve signed your MPN and it’s been accepted, you do not need to sign a new MPN for future loans. Unless your school does not allow more than one loan to be made under the same MPN, you can borrow additional direct loans on a single MPN for up to 10 years.

You will receive a disclosure statement from the Department of Education that gives you specific information about the loan you are taking out under your MPN, including the loan amount, fees and the expected disbursement dates to your school.

If you have already received Direct Loans at Evergreen, you do not need to complete Loan Entrance Counseling or sign a MPN each time.

Federal Direct Loans Information

You need to fill out the FAFSA for every academic year beginning in January to apply for Federal Direct loans.

You must be a regularly enrolled (degree-seeking) student attending at least half time (not a special student).

There are two major student loan programs:

• The Direct Subsidized Loan is for undergraduate students with demonstrated financial need, as determined by federal regulations. Interest is deferred on subsidized loans while you are in school at least half-time, during your grace period and during deferment periods.
• The Direct Unsubsidized Loan is for undergraduate and graduate students and is not based on financial need. Interest will be charged during all periods of this loan.

More about applying for Federal Direct Loans.

Consolidation

For borrowers who want to combine different eligible Federal student loans into one loan, Direct Consolidation Loans will be available.

More information about Direct Consolidation or call (800) 557-7392.

Part-time Enrollment

You can receive loans at part-time enrollment if you are in at least 6 credits as an undergraduate, and 4 credits if you are in the Master of Public Administration or Master of Environmental Studies program. Master in Teaching students have no part-time enrollment option. Students enrolled less than part-time are not eligible and the grace period starts.

Subsidized Versus an Unsubsidized Loan

Subsidized and unsubsidized loans both accrue interest while the student is enrolled, but in the case of the subsidized loan the interest is paid by the federal government while you are in school and during the deferment period. Undergraduate students with sufficient financial need will be offered a subsidized loan.

If you borrow unsubsidized loan, you will be responsible for the interest on your loan. The interest may be paid during school or added to the principal (capitalized) when repayment begins. Students with limited financial need may be offered funds from both the subsidized and unsubsidized loan programs in amounts that total the student's annual eligibility.

If your interest is capitalized, it will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you’ll repay less in the long run.

Annual and Aggregate Direct Student Loan Limits

The table below shows maximum allowable annual and aggregate amounts based on grade level and student status.

The amount you can actually borrow is determined by several factors including your budget for the cost of attending and other aid you are being offered. Based on your award offers, you may not always qualify for the maximum Stafford Loan amount. Refer to your financial aid offers at My Evergreen.

Annual Loan Limits for Undergraduate and Graduate or Professional Students

Aggregate Loan Limits

This is the total amount you may borrow during your academic career.

Independent students are eligible to borrow more because they are paying for college without eligibility for their families to apply for the PLUS Loan.

You can get your cumulative loan history at NSLDS. You need your FSA ID for accessing this information. If you do not have your FSA ID, you may edit your FSA ID at the Federal Student Aid site.

The Parent Loan for Undergraduate Students

The Parent Loan for Undergraduate Students (PLUS) is a Federal Educational Loan. The parent is the borrower of this loan. It is part of the student's financial aid package and students are required to meet satisfactory academic progress requirements. The amount that can be borrowed is based on the cost of attendance less any other financial aid awarded.

Approved and processed parent plus loans are generally applied to the current charges on the student's account first before other aid is applied. Any credit balance that is generated as a direct result of the parent plus loan disbursing to the student's account, will go directly to the student unless indicated otherwise on the parent plus application.

Please note that when the PLUS Loan is requested to go to the parent, it is mailed and will not be e-refunded.

See loan details.

How to Apply for a Direct PLUS Loan

1. Your parent has been offered this award in your financial aid package.
2. Parents will need to sign-in at https://studentaid.gov/ with their own FSA ID.
3. Update the Personal Information box in the lower right corner.
4. Click on "Request a Direct PLUS Loan."
5. Make sure you choose Parent PLUS.
6. Follow step by step instructions.
7. Wait for us to send you an email once your loan has been processed (approximately 7-10 days from the date of application completion).

If you already have a Parent PLUS Loan in place, but need to adjust your loan amount, please visit our Applying for Financial Aid and you can find the Direct PLUS Loan Request Form for Parents under the Loan Forms section.

Eligibility

PLUS borrowers must be either: the biological parent, adoptive parent or stepparent of the student. Stepparent eligibility is limited to those whose income and assets are taken into account when calculating the student's Expected Family Contribution. Non-custodial parents may also borrow PLUS loan (a different PLUS-only application is required). Borrowers must sign a master promissory note (MPN). This can be done online at: http://www.studentloans.gov.

Information from the Direct Loan Basics for Parents brochure found at The Office of Federal Student Aid: http://www2.ed.gov/offices/OSFAP/DirectLoan/pubs/studentpubs.html

Eligibility Requirements

To be eligible for a Federal Direct PLUS Loan at Evergreen:

• You must be the biological or adoptive parent (or in some cases the stepparent) of the student for whom you are borrowing;
• Your child must be a dependent student who is enrolled at least half-time at Evergreen;
• You cannot have an adverse credit history, and must be approved through the Federal Department of Education PLUS application process;
• Both you and you and the student must be U.S. citizens or eligible noncitizens;
• Both you and you and the student must not be in default on any federal education loans;
• Both you and you and the student must not owe an overpayment on a federal education grant; and
• Both you and you and the student must meet other general eligibility requirements for the Federal Student Aid programs PLUS Loan Limits.

There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child's education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. Evergreen will determine the actual amount you may borrow. This amount will be indicated on your student's Financial Aid Information on my.evergreen.

Interest Rate

The interest rate for Direct PLUS Loans is a fixed rate and can vary from year to year. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information or interest rates for Direct PLUS Loans, visit www.studentloans.gov for more information.

Loan Charges

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. The fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

Repayment

Repayment of a Direct PLUS Loan begins 60 days after the full amount you've borrowed for a school year has been disbursed. This means that you generally must begin repayment while your child is still in school. For Direct PLUS Loans with a first disbursement date that is on or after July 1, 2008, you may request that repayment be delayed while your child is enrolled at least half-time and during the 6-month period after your child graduates or is no longer enrolled at least half-time. If you would like to postpone repayment of your PLUS Loan based on your child's enrollment status, you must contact the Direct Loan Servicing Center.

Direct PLUS Loans for Graduate and Professional Degree Students

Graduate and professional degree students can borrow a Direct PLUS Loan to help cover education expenses. The terms and conditions applicable to PLUS Loans for parents also apply to PLUS Loans for graduate and professional students and are based on your personal credit score.

More information about Grad Plus Loans.

Alternative or private loans are offered by several banks and lending agencies. These loans are not part of the federal government’s guaranteed student loan programs and are not subsidized by the federal government. Alternative loans are available to credit-worthy borrowers or borrowers with a credit-worthy cosigner. Applying with a cosigner may improve your chances of approval or result in a lower interest rate. While we encourage students to explore their options, unless you or your cosigner have excellent credit, alternative educational loans generally have higher interest rates. For most students we recommend that you exhaust your Federal educational loan eligibility before considering alternative loans.

Eligibility for enrolled students is determined by calculating the difference between the student's Cost of Attendance and their current funding from other aid sources.

Interest rates and fees may vary depending on your credit rating and are determined by the lending institution.

 Select and Compare Private Loans 

Lenders are recommended based upon their historical lending with our students or are based upon the quality of products and services they provide to students and families. We have carefully considered our selections in order to provide you with the best possible list of suggested lenders. However, if you wish to use another lender that is not on this list, you have the right to do so.

Important considerations when shopping for an alternative educational loan:

• Annual Percentage Rate (APR): The APR is the annual cost of your loan; it includes interest and the effect of any fees and charges. APRs will differ depending on the terms and amounts of your loan. If the rate is variable, the APR may change during the life of the loan. Carefully consider the terms and APRs when your borrow an alternative loan.
• Fees: Does the lender charge any type of fees? Some lenders charge no fees at all, while some charge fees at the time they disburse, at repayment, or both.
• Co-signer release: Does the loan require you to have a co-signer? Does the lender offer a co-signer release option after you make a required number of on time payments?
• Interest capitalization: What happens if you choose not to pay interest while you are in school? When is the interest added? If the interest is capitalized monthly, quarterly, or annually, the loan is more expensive than if the loan is capitalized once at repayment.
• Servicers: Does the lender sell their loans or contract with a servicer? Some lenders service their own loans; others may sell loans or contract with a service agency. If your loan is sold or serviced to another agency, all future correspondence and payments must go to the new agency.
• Benefits: Does the lender offer incentive rewards for on-time payments or prior banking history with the institution?

Lenders use credit scores to make credit decisions to determine which applicants are likely to repay their loans on time. Credit scoring is calculated using many pieces of your past bill history. The way a person managed credit in the past is often a good indication of how they will manage credit in the future. Therefore, your credit score is like a snapshot of your level of credit risk at a particular time. So, give yourself the credit you deserve. Pay your bills on time and avoid applying for too many credit accounts. It is a good practice to periodically monitor your own credit report. Your may obtain a copy of your credit report by contacting any or all of the three major credit reporting agencies: Equifax 800-685-1111, Experian 888-397-3742, or TransUnion 800-888-4213.

Once you have been approved by a lender to borrow through their loan program, the lender will contact Evergreen's Financial Aid for certification of the loan. The amount a student receives cannot exceed the cost of attendance minus other aid.

Private Educational Loan Self-Certification Form PDF